The Trust Reserve team, responsible for the CNHC stablecoin pegged to the offshore yuan, has been allegedly detained by the Chinese police.
PANews, a local Asian outlet, exclusively obtained this information. It revealed that the team was reportedly detained by the Chinese police, with their family members being notified.
Investigations revealed that the team’s office was empty, and the entrance was sealed with a notice stating “Judicial Seizure, Strictly No Vandalism.” The seal was signed on May 29, 2023, suggesting recent legal action.
Trust Reserve offers various products, including the CNHC, an offshore RMB-pegged stablecoin, and the HKDC, Hong Kong dollar-pegged one. Trust Reserve also operates a cross-border payments business, which may have implications for the ongoing case.
In March, the stablecoin issuer completed a Series A+ investment round headed by KuCoin Ventures and included IDG Capital and Circle participation. The total amount raised was $10 million. Around sixty people were working for the firm then, and they intended to bring on more.
Further details on the situation and the potential impact on Trust Reserve’s operations are yet to emerge, leaving many questions about the fate of the CNHC Issuance Team. There has been no update from the core team in China in more than a week, and the protocol is still experiencing some degree of partial unavailability.